Venezuela consumer goods

McDonald’s halts sale of Big Mac burgers in Venezuela

US fast-food chain McDonald's Corp has stopped selling its Big Mac burger in crisis-hit Venezuela, the French news agency Agence France-Presse reported on July 20th.

Analysis

Arcos Dorados Holdings Inc, the company's largest global franchisee operating in Latin America and Caribbean, reportedly said that the halt was temporary. However, the franchisee added that other burger varieties such as the Quarter Pounder and the McNifica will continue to be served. According to Venezuelan media reports, the company is unable to source the slice of bread that separates the two patties in the burger, thereby halting its sales.

The announcement comes in the face of a deteriorating Venezuelan economy which has taken a hit in the past few months due to sliding oil prices. The economic crisis has created food shortages with inflation expected to reach 720% in 2016, according to the International Monetary Fund. Datanálisis, a local Venezuelan pollster, reported that the food shortages reached 83% in April this year.

Last year, a shortage of potatoes in the country forced McDonald's to temporarily halt the sales of its french fries. Coca Cola Femsa, Coca Cola Co's regional unit in Venezuela also stopped the production of its sweetened beverages due to a shortage of sugar earlier this year.